Medellín-based fintech Palomma has secured $10 million in Series A funding, bringing its total to $14 million, to enhance its AI-powered rental payment platform and landlord financing products across Colombia.
- Raised $10M Series A led by Mexican firm Cometa, total $14M raised
- Processes $130M monthly in rent payments, serves 200K+ tenants
- Offers financing products for tenants and landlords via AI-powered platform
What happened
Palomma, a Colombian startup founded by Cipriano Echavarría, a former Nubank team member, announced a $10 million Series A funding round led by Mexican venture firm Cometa. This round increases Palomma’s total capital raised to $14 million, supported by investors including Volpe Capital, Clocktower Technology Ventures, Tekton Ventures, Simma Capital, and Yango Ventures, as well as earlier backers like Y Combinator and Norte Ventures. The funding aims to fuel further growth in Colombia and develop new AI and financial products.
The company has experienced rapid traction, growing its annual recurring revenue thirtyfold in 18 months to about $3 million. Palomma currently facilitates around $130 million in monthly rental payments, working with over 500 property managers and 200,000 tenants. It offers an integrated platform combining leasing management AI tools with rent payment processing and financial services tailored for landlords and renters.
Why it matters
Palomma addresses critical inefficiencies in rental payments and financing in Colombia’s property market. Tenants often pay rent at a time misaligned with their income schedule, while landlords face challenges collecting rent and accessing financing secured against rental income. Palomma integrates AI and payment processing to ease these pain points, automating leasing communications and rent collections through property managers as key distribution partners.
By building payment histories and reliable rental income records, Palomma unlocks financial product offerings such as rent rewards for tenants, credit building, upfront rental income advances, and rental income protection. These innovations create new flexibility for tenants and financial stability for landlords, fostering a more resilient rental ecosystem in Latin America.
What to watch next
Palomma plans to focus on dominating the Colombian rental market while preparing to expand into other Spanish-speaking regions, including Mexico, Brazil, and the U.S. Hispanic market. The startup is developing new features like Palomma Flex, which would enable tenants to split monthly rent payments into two installments, an innovation targeting income timing mismatches.
Continued growth will hinge on scaling property manager adoption of Palomma’s AI software and financial services, plus regulatory and competitive dynamics in regional real estate and fintech markets. Investors and industry watchers should monitor Palomma’s progress as it builds on its initial momentum and expands its product suite for landlords, tenants, and property managers.